Singh deserves support, Tata says

Ratan Tata, chairman of Tata Sons, which manages India’s biggest business group, said Prime Minister
Manmohan Singh
must restore the credibility of his government and put the nation on a “growth path once again".

Mr Singh “deserves the support of the people of India at this critical time", Mr Tata said in a statement. “All eyes are on him here and overseas in what could be his finest hour in leading the country to economic prosperity once again," Mr Tata said, blaming opposition parties and corruption for helping to bring “government action to a standstill".

Mr Tata said Mr Singh needs to implement reforms, remove ‘‘roadblocks’’ to growth, and control crony capitalism. ‘‘For the sake of the country, we all hope he will.’’

Economic growth slowed to 5.3 per cent in the three months ended March 31, the weakest pace in almost a decade. Mr Singh, who assumed the finance minister’s role last month after Pranab Mukherjee resigned to stand for election for president of India, faces a budget deficit requiring record borrowing, a paralysis in policy making that has hurt efforts to spur investment and a faltering global economy.

Meanwhile, Maruti Suzuki India, the top car seller in India, said violence erupted at a factory near New Delhi, resulting in dozens of injuries, damaged property and forcing the company to halt output at the plant.

At least 40 managers and executives at the Manesar plant were hospitalised, the Indian carmaker, majority owned by Japan’s Suzuki Motor Corp, said. Workers set property on fire, ransacked office property and damaged facilities, Maruti said. At least one person died and about 90 people, including three Japanese executives, were injured, the Times of India reported.

Suzuki shares declined as much as 4.1 per cent in Tokyo trading as the violence revived concerns about recurring labour disputes at the Indian unit. Disruptions from a 33-day labour strike at the Manesar plant caused profit at Maruti to slide 29 per cent last fiscal year.

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“If this goes on for a long period of time, the impact on Suzuki will be big," said Mitsushige Akino, Tokyo-based executive officer at Ichiyoshi Investment Management, which oversees about ¥40 billion ($490 million).

According to Maruti Suzuki, the dispute began on Wednesday morning when a worker beat up a supervisor on the shop floor. The workers union then prevented management from taking disciplinary action, blocking managers from leaving the factory after work, Maruti Suzuki said. Subsequent talks to resolve the dispute led to workers attacking managers, according to the statement.

Production at the factory, which makes Maruti Suzuki’s Swift compact cars, had to be halted, the company said. Output at the Gurgaon plant continued normally, it said.

In October, a labour strike in Manesar halted output of Swift compact cars. Workers also staged strikes at parts maker Suzuki Powertrain India, causing production to be halted at Maruti’s factory in Gurgaon, also near the capital.

The strike ended after an agreement was reached between management, workers and the state government. The strike cost the company over 40,000 units of production, Maruti said.